Minister for Agriculture Charlie McConalogue has expressed confidence that a Chinese investigation into subsidies for dairy farmers will not lead to the imposition of trade restrictions.
Speaking in Beijing following meetings with senior Chinese ministers, he said all European Union and Irish supports for the dairy industry were fully compliant with international trade rules.
“We’re very confident in relation to the fact that we’re fully World Trade Organisation (WTO) compliant. I think that’s the key point here. It’s not something I’m concerned about from that point of view, because I believe we have full capacity to resolve any issues working with the European Commission in relation to that,” he told The Irish Times.
“I think it’s timely my visit here this week as well, because it’s an opportunity to reiterate our position, provide reassurance on those points and also then seek as well to build on the different business opportunities that are here for the dairy sector and other sectors too.”
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Mr McConalogue was speaking at the start of an agri-food trade mission to China and South Korea, during which he will be joined by Minister of State Martin Heydon who is responsible for new markets. This is will be the Minister for Agriculture’s second visit to each country within 18 months and follows the reopening of both markets to Irish beef.
Beijing’s commerce ministry last month announced an investigation into European Union subsidies for dairy products exported to China. The investigation will look into a number of EU-wide subsidies as well as national measures, including Ireland’s Dairy Equipment Scheme (DES).
The opening of the investigation followed the announcement of plans by the European Commission to impose steep new tariffs on Chinese electric vehicles (EV) and has been widely seen as a response to it. Among those Mr McConalogue met in Beijing on Monday were China’s agriculture minister, Han Jun; customs minister Yu Jinhua; and customs vice-minister Wang Lingjun.
“It’s an important market for us, China. For our dairy sector, it’s about 6 per cent of our overall dairy export, so that’s important. It’s something we want to see maintained and indeed grown. And from the meetings I’ve had here this week, I see particular potential as we go forward too,” Mr McConalogue said.
China reopened its market to Irish beef earlier this year but the move coincided with a slowing of economic growth and a weakening of consumer confidence. Mr McConalogue acknowledged the economic conditions had affected the market for Irish beef, which is sold as a premium product.
“Demand is not as strong as what it would have been generally, but I think there are still opportunities here. It’s something that our beef companies as well see a real opportunity in for the future,” he said.
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